Demand and Supply - Demand Shift pg-20
Demand Shifts out due to Changing Expectations

Suppose a warm spring leads to the belief that the coming summer will be hotter than usual. In such a case, the demand for Central Air Conditioning units would shift out (increase) as some consumers whose homes were not centrally cooled decide to install units, and still other consumers who have old units decide to replace them in anticipation of a sweltering summer.

The demand curve shown to the right labeled D1 is the demand for central air conditioning units in a typical summer. When expectations change so that a much hotter than normal summer is expected, demand shifts out (increases) to the demand curve labeled D2.

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